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According to a
report, "Business Process Outsourcing (BPO) is
the fastest growing type of outsourcing
arrangement, growing at a rate of almost 11
percent annually over the next five years. With
BPO, the vendor is responsible for an entire
business function, including the information
systems that support it. An example of this is
the Federal Emergency Management Agency (FEMA),
which out sources the operation of its National
Flood Insurance program."
"The
International Monetary Fund (IMF) has debunked
fears of job losses in industrialized nations
due to outsourcing of services. It says in a new
study that farming out business, computer and
information services to developing economies
actually expands employment and enhances
efficiency."
"Market trends
in BPO industry show that globalization has
matured with outsourcing being seen as something
irreversible. New markets and suppliers are
emerging in countries like Eastern Europe,
Philippines and China"
Evalueserve, a
research and intellectual property firm,
estimates that for every $100 of call-center
work off shored by US companies, $143 is
invested back into the US economy. This figure
is $133 for IT services work and $142 for
high-end knowledge services like equity
research, and risk management.
According to
the Global Insight study, US spending for
offshore outsourcing of computer software and
services would grow from $10 billion in 2003 to
$31 billion in 2008. The total savings from the
use of offshore resources will grow from US$6.7
billion to US$20.9 billion, in the same period.
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